accruals

  

Definition

Short-term liabilities (such as interest, taxes, utility charges, wages) which continually occur during an accounting period but are not supported by an invoice or a written demand for payment. When preparing financial statements for that accounting period, such liabilities are estimated on the basis of experience (based on previous payments). Similar increases in the assets of the firm (which may also continually occur) is not taken into account in order to comply with accrual basis accounting rules.

Use accruals in a sentence

  • The accruals continued to pile up as there was a discrepancy between the delivery of goods and our actual receipt.

    11 people found this helpful    
  • You must be sure that you factor in all of your accruals when you are trying to figure out how much you owe.

    3 people found this helpful    
  • I told my manager that there was no way to avoid accruals and that we would have to deal with them.

    10 people found this helpful    
Show more usage examples...

Related Videos




http://www.businessdictionary.com/definition/accruals.html

Have a question about accruals? Ask for help in the
Community
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z